2002 (3) TMI 906 - HC - VAT and Sales Tax

Summary

Issues:
1. Appealability of assessment under section 7(7A) of the Kerala General Sales Tax Act, 1963.
2. Entitlement to concessional rate under S.R.O. No. 1728 of 1993 for SSI units with turnover below rupees fifty lakhs.
3. Revision of order demanding penal interest based on court decisions.

Issue 1: Appealability of assessment under section 7(7A):
The petitioner argued that an assessment under section 7(7A) is a regular assessment under section 17(3) and hence appealable under section 34 of the Kerala General Sales Tax Act. The court acknowledged this argument but noted the Appellate Assistant Commissioner's finding of inordinate delay in the appeal. The court decided not to refer the matter to the appellate authority due to the petitioner's lack of entitlement to the claimed concessional rate of tax under S.R.O. No. 1728 of 1993.

Issue 2: Entitlement to concessional rate under S.R.O. No. 1728 of 1993:
For an SSI unit to avail the concessional rate under S.R.O. No. 1728 of 1993, the turnover must be below rupees fifty lakhs on goods manufactured by the unit. The court emphasized that the concessional rate cannot be applied unless the taxable turnover on products manufactured by the unit is identified and fixed by the assessing officer. In the case of payment of tax at a compounded rate under section 7(7A), the turnover dissection does not occur, making the benefit of S.R.O. No. 1728 of 1993 unavailable. The petitioner's choice of the compounded rate precludes claiming any other concessional rate.

Issue 3: Revision of order demanding penal interest:
The court vacated the order of the revisional authority declining to entertain the revision petition against penal interest, citing a previous court decision that such orders are revisable. The court directed the Deputy Commissioner to hear the petitioner on the liability of penal interest for specific years. The Commissioner was instructed to dispose of the revision petitions within two months. The petitioner was required to remit an additional sum towards tax, with a stay on the balance pending the revision outcome.

In conclusion, the original petition was disposed of accordingly, with the order on a related matter dismissed. The petitioner's obligations and the process for revising the decisions were outlined for compliance within specified timelines.